Second International Conference on Innovative Computing, Informatio and Control (ICICIC 2007) Innovative Computing, Information and Control, 2007. ICICIC '07. Second International Conference on. :213-213 Sep, 2007
Ching-Chieh Lin, Chi-Yun Hua, Wen-Hsiang Lin, and Wen-Chih Lee
International Journal of Academic Research in Accounting, Finance and Management Sciences, 2012, 2, 4, 283.
International Financial Reporting Standards, IFRS adoption, financial reporting quality, accounting standards, and value relevance
Taiwan’s financial accounting regulatory amendment directions shift the framework from the U.S. GAAP-based to International Financial Reporting Standards (IFRS)-based to accelerate the pace of progress towards convergence with IFRS. In the amendment process, the converge outcomes of earnings quality become an important and urgent issue. The purpose of this study is to investigate the converge impacts on reporting quality over 1999 to 2009, which divided into three timeframes: the U.S. GAAP-based era ranging from 1999-2005, the IFRS convergence era ranging from 2006-2007, and the preparation period of IFRS adoption ranging from 2008-2009. Two criteria of reporting quality is included: value relevance and the magnitude of earnings management. The empirical results show that the financial reporting quality got improvement under the amendment towards IFRS adoption.
Ching-Chieh Lin, Chi-Yun Hua, Shu-Hua Lee, and Wen-Chih Lee
International Journal of Accounting and Information Management, 2011, 19, 1, 80.
Stocks, Compensation, Disclosure, Business policy, Taiwan, and Finance
Purpose - The purpose of this paper is to investigate the policy consequences of expensing stock-based compensation in Taiwan. Design/methodology/approach - Data were collected on listed firms from 2006 to 2008 and a goodness-of-fit of accounting earnings valuation model was used to investigate the incremental information content of expensing stock-based compensation. In addition, two sensitivity indexes were used to investigate the sensitivity between compensation and firm performance before and after income statement recognition of stock-based compensation. Findings - It was found that the association between earnings and abnormal returns is stronger after expensing compensation. In addition, the relationship between compensation variables, especially stock compensation, and firm performance is stronger after 2008, indicating that expensing compensation reinforces the relationship between compensation and performance. Practical implications - The findings suggest that disclosure and recognition are not substitutes. The findings also have implications for standard setters and for investors attempting to mitigate managers' self-interested behavior. Originality/value - The accounting treatment of employee stock-based compensation is a controversial issue among academics, regulators, managers, auditors, and investors. This paper investigates the incremental information content of the new accounting standard and explores whether the relationship between compensation and firm performance has become more transparent than before.